Sosandar, the online womenswear retailer, has reported wider losses in the latest financial year. However, the company remains optimistic as it has started the new year strongly. Sosandar has made significant progress, with a 54% increase in year-on-year revenue and a 71% reduction in operating costs during the first quarter. This has led to a 69% improvement in its loss position.

The positive performance has continued into July, with revenue up 57% and operating costs reduced by 84% compared to the same period last year. The company has also seen an 83% improvement in its net loss position.

There is a significant trend observed by Sosandar, which is a decrease in returns during and after lockdown. This trend is also seen by online retailer Asos, who noted that its returns this year were only 38% compared to 50% last year. This decrease in returns is attributed to changes in customer behavior and the company’s product mix. Although returns are expected to normalize, they are anticipated to remain below previous levels. This has given Sosandar the confidence to increase its marketing activity in the second quarter to attract more customers.

Despite reducing its monthly marketing spend by 85%, Sosandar has successfully increased its customer base by 8% since the end of the last financial year. This shows potential for growth as the company increases its marketing efforts. Additionally, Sosandar has partnered with renowned retailers John Lewis and Next to sell its products on their websites. This collaboration will expose Sosandar to a larger consumer base.

In terms of its financial performance in the previous financial year, Sosandar experienced remarkable revenue growth of 103%. However, the gross margin dropped due to the company’s focus on customer acquisition and measures implemented to address the impact of Covid-19. Sosandar incurred losses of £7.66 million in EBITDA and £7.8 million in net loss, wider than the previous year’s loss of £3.54 million. These losses were primarily driven by investments in the team, supply chain, and marketing initiatives.

Useful links:
1. Sosandar Investor Relations
2. Asos Online Retailer